Wesfarmers managing director Richard Goyder says the federal government's inability to find budget savings is concerning and Australia needs to cut its corporate tax rate to remain competitive.
Mr Goyder told reporters, after unveiling the retail and mining conglomerate's half year earnings on Wednesday, that there is "an economic war" and Australia will become even more uncompetitive if US President Donald Trump cuts his country's corporate taxes as indicated.
"I have not seen an alternative plan to grow the economy and Australia at the moment has - and will particularly have if President Trump reduces corporate taxes - an uncompetitive tax rate," Mr Goyder said.
The head of the conglomerate that runs Coles supermarkets, Bunnings, Kmart, Target and Officeworks, as well as mining and chemical interests, said a competitive tax rate was needed to generate investment.
"I really worry about what is going on in Canberra at the moment where we can't get decent fiscal savings and there is this notion that we can keep taxing businesses at 30 per cent and think there's no consequence," he said.
The federal government wants to eventually reduce the corporate tax rate from 30 per cent to 25 per cent by 2027.
However, Labor remains opposed to the company tax cut plan and the government has had trouble passing savings policies through the Senate.
The government has flagged the possibility that it will raise taxes to help pay for the National Disability Insurance Scheme if the Senate continues to block its omnibus saving bill, which ties welfare cuts to an overhaul of childcare fee subsidies.
